This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
9028
Vol. 86, No. 27
Thursday, February 11, 2021
1 Section 311 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, Public Law
111–203, 124 Stat. 1376 (2010) (codified at 12
U.S.C. 5411). The Act also amended section 3 of the
Federal Deposit Insurance Act (FDI Act) to
designate the FDIC as the ‘‘appropriate Federal
banking agency’’ for State savings associations.
2 76 FR 47652 (Aug. 5, 2011).
3 76 FR at 47653.
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 390
RIN 3064–AF30
Removal of Transferred OTS
Regulations Regarding Definitions of
Terms
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Notice of proposed rulemaking.
SUMMARY: In order to streamline FDIC
regulations, the FDIC proposes to
rescind and remove from the Code of
Federal Regulations rules entitled
Definitions for Regulations Affecting All
State Savings Associations that were
transferred to the FDIC from the Office
of Thrift Supervision (OTS) on July 21,
2011, in connection with the
implementation of Title III of the Dodd-
Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act). The
effective date of rescinding and
removing these regulations would be
coordinated with the rescission and
removal of the other remaining subparts.
DATES: Comments must be received on
or before March 15, 2021.
ADDRESSES: You may submit comments,
identified by RIN 3064–AF30, by any of
the following methods:
• FDIC Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow instructions for submitting
comments on the agency website.
• Email: Comments@fdic.gov. Include
RIN 3064–AF30 on the subject line of
the message.
• Mail: James P. Sheesley, Assistant
Executive Secretary, Attention:
Comments, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery to FDIC: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
NW building (located on F Street) on
business days between 7 a.m. and 5 p.m.
Please include your name, affiliation,
address, email address, and telephone
number(s) in your comment. All
statements received, including
attachments and other supporting
materials, are part of the public record
and are subject to public disclosure.
You should submit only information
that you wish to make publicly
available.
Please note: all comments received
will be posted generally without change
to https://www.fdic.gov/regulations/
laws/federal/, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
Thomas Hearn, Counsel, Legal Division,
thohearn@fdic.gov, 202–898–6967; or
Kathryn Marks, Counsel, Legal Division,
kmarks@fdic.gov, 202–898–3896.
SUPPLEMENTARY INFORMATION:
I. Policy Objectives
The policy objective of the proposed
rule is to rescind and remove
unnecessary and duplicative regulations
in order to simplify them and improve
the public’s understanding of them.
Subpart Q of part 390 is composed
entirely of definitions of terms used in
other subparts of parts 390 and 391.
When completed, the ongoing rescission
and removal of all other subparts of
parts 390 and 391 mean the definitions
in subpart Q will no longer apply to any
current regulation, rendering it
unnecessary. Therefore, the proposed
rescission and removal of subpart Q
may contribute to minimizing potential
misunderstanding of the subpart by
readers and help keep federal
regulations current.
II. Background
Title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of
2010 (the Dodd-Frank Act or the Act)
provided for the functions, powers, and
duties of the Office of Thrift
Supervision (OTS) relating to State
savings associations to transfer to the
FDIC effective one year after July 21,
2010, the date that the Dodd-Frank Act
was enacted.1 In connection with this
transfer, effective July 22, 2011, the
FDIC caused to be published in the
Federal Register the transferred OTS
regulations related to State savings
associations reissued as parts 390 and
391 of the FDIC’s regulations.2
When the FDIC reissued OTS
regulations as parts 390 and 391 of the
FDIC’s regulations, it specifically noted
that its staff would evaluate the reissued
regulations and may later recommend
incorporating them into other FDIC
regulations, amending them, or
rescinding them, as appropriate.3 The
VerDate Sep<11>2014 19:35 Feb 10, 2021 Jkt 253001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\11FEP1.SGM 11FEP1
khammond on DSKJM1Z7X2PROD with PROPOSALS
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
9028
Vol. 86, No. 27
Thursday, February 11, 2021
1 Section 311 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, Public Law
111–203, 124 Stat. 1376 (2010) (codified at 12
U.S.C. 5411). The Act also amended section 3 of the
Federal Deposit Insurance Act (FDI Act) to
designate the FDIC as the ‘‘appropriate Federal
banking agency’’ for State savings associations.
2 76 FR 47652 (Aug. 5, 2011).
3 76 FR at 47653.
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 390
RIN 3064–AF30
Removal of Transferred OTS
Regulations Regarding Definitions of
Terms
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Notice of proposed rulemaking.
SUMMARY: In order to streamline FDIC
regulations, the FDIC proposes to
rescind and remove from the Code of
Federal Regulations rules entitled
Definitions for Regulations Affecting All
State Savings Associations that were
transferred to the FDIC from the Office
of Thrift Supervision (OTS) on July 21,
2011, in connection with the
implementation of Title III of the Dodd-
Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act). The
effective date of rescinding and
removing these regulations would be
coordinated with the rescission and
removal of the other remaining subparts.
DATES: Comments must be received on
or before March 15, 2021.
ADDRESSES: You may submit comments,
identified by RIN 3064–AF30, by any of
the following methods:
• FDIC Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow instructions for submitting
comments on the agency website.
• Email: Comments@fdic.gov. Include
RIN 3064–AF30 on the subject line of
the message.
• Mail: James P. Sheesley, Assistant
Executive Secretary, Attention:
Comments, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery to FDIC: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
NW building (located on F Street) on
business days between 7 a.m. and 5 p.m.
Please include your name, affiliation,
address, email address, and telephone
number(s) in your comment. All
statements received, including
attachments and other supporting
materials, are part of the public record
and are subject to public disclosure.
You should submit only information
that you wish to make publicly
available.
Please note: all comments received
will be posted generally without change
to https://www.fdic.gov/regulations/
laws/federal/, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
Thomas Hearn, Counsel, Legal Division,
thohearn@fdic.gov, 202–898–6967; or
Kathryn Marks, Counsel, Legal Division,
kmarks@fdic.gov, 202–898–3896.
SUPPLEMENTARY INFORMATION:
I. Policy Objectives
The policy objective of the proposed
rule is to rescind and remove
unnecessary and duplicative regulations
in order to simplify them and improve
the public’s understanding of them.
Subpart Q of part 390 is composed
entirely of definitions of terms used in
other subparts of parts 390 and 391.
When completed, the ongoing rescission
and removal of all other subparts of
parts 390 and 391 mean the definitions
in subpart Q will no longer apply to any
current regulation, rendering it
unnecessary. Therefore, the proposed
rescission and removal of subpart Q
may contribute to minimizing potential
misunderstanding of the subpart by
readers and help keep federal
regulations current.
II. Background
Title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of
2010 (the Dodd-Frank Act or the Act)
provided for the functions, powers, and
duties of the Office of Thrift
Supervision (OTS) relating to State
savings associations to transfer to the
FDIC effective one year after July 21,
2010, the date that the Dodd-Frank Act
was enacted.1 In connection with this
transfer, effective July 22, 2011, the
FDIC caused to be published in the
Federal Register the transferred OTS
regulations related to State savings
associations reissued as parts 390 and
391 of the FDIC’s regulations.2
When the FDIC reissued OTS
regulations as parts 390 and 391 of the
FDIC’s regulations, it specifically noted
that its staff would evaluate the reissued
regulations and may later recommend
incorporating them into other FDIC
regulations, amending them, or
rescinding them, as appropriate.3 The
VerDate Sep<11>2014 19:35 Feb 10, 2021 Jkt 253001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\11FEP1.SGM 11FEP1
khammond on DSKJM1Z7X2PROD with PROPOSALS
9029Federal Register / Vol. 86, No. 27 / Thursday, February 11, 2021 / Proposed Rules
4 The list below reflects the relevant Federal
Register citations and effective dates for the
rescission and removal of the subparts of part 391.
Subpart A—Security Procedures, final rule, 83 FR
13839 (Apr. 2, 2018) https://www.govinfo.gov/
content/pkg/FR-2018-04-02/pdf/2018-06161.pdf,
effective May 2, 2018; Subpart B—Safety and
Soundness Guidelines and Compliance Procedures,
final rule, 80 FR 65904 (Oct. 28, 2015) https://
www.govinfo.gov/content/pkg/FR-2015-10-28/pdf/
2015-27293.pdf, effective November 27, 2015;
Subpart C—Fair Credit Reporting, final rule, 80 FR
65913 (Oct. 28, 2015) https://www.govinfo.gov/
content/pkg/FR-2015-10-28/pdf/2015-27291.pdf,
effective November 27, 2015; Subpart D—Loans in
Areas Having Special Flood Hazards, final rule, 79
FR 75742 (Dec. 19, 2014) https://www.govinfo.gov/
content/pkg/FR-2014-12-19/pdf/2014-29761.pdf,
effective January 20, 2015; and Subpart E—
Acquisitions of Control of State Savings
Associations, final rule, 80 FR 65889 (Oct. 28, 2015)
https://www.govinfo.gov/content/pkg/FR-2015-10-
28/pdf/2015-27289.pdf, effective January 1, 2016.
5 The list below reflects the relevant Federal
Register citations and effective dates for the 24
subparts of part 390 that have been rescinded and
removed. The FDIC is also expected to propose
rescinding and removing Subpart W at the same
Board meeting on January 19, 2021.
Subpart A—Restrictions on Post-Employment
Activities of Senior Examiners, final rule, 79 FR
42181 (July 21, 2014) https://www.govinfo.gov/
content/pkg/FR-2014-07-21/pdf/2014-16974.pdf,
effective August 20, 2014; Subpart B—Removals,
Suspensions, and Prohibitions Where a Crime is
Charged or Proven, final rule, 80 FR 5009 (Jan. 30
2015) https://www.govinfo.gov/content/pkg/FR-
2015-01-30/pdf/2015-01327.pdf, effective March 2,
2015; Subpart C—Rules of Practice and Procedure
in Adjudicatory Proceedings, final rule, 80 FR 5009
(Jan. 30 2015) https://www.govinfo.gov/content/pkg/
FR-2015-01-30/pdf/2015-01327.pdf, effective
March, 2, 2015; Subpart D—Rules for Investigations
and Formal Examination Proceedings, final rule, 80
FR 5009 (Jan. 30 2015) https://www.govinfo.gov/
content/pkg/FR-2015-01-30/pdf/2015-01327.pdf,
effective March 2, 2015; Subpart E—Rules of
Practice Before the FDIC, final rule, 80 FR 5009
(Jan. 30 2015) https://www.govinfo.gov/content/pkg/
FR-2015-01-30/pdf/2015-01327.pdf, effective March
2, 2015; Subpart F—Application Process
Procedures, final rule approved by the FDIC Board
on December 15, 2020, https://www.govinfo.gov/
content/pkg/FR-2020-10-15/pdf/2020-21000.pdf;
Subpart G—Nondiscrimination Requirements, final
rule approved by the FDIC Board on December 15,
2020, https://www.fdic.gov/news/board/2020/2020-
12-15-notice-sum-f-mem.pdf; Subpart H—
Disclosure and Reporting of CRA-Related
Agreements, final rule, 79 FR 42183 (July 21, 2014)
https://www.govinfo.gov/content/pkg/FR-2014-07-
21/pdf/2014-16973.pdf, effective August 20, 2014;
Correction 80 FR 23692 (Apr. 29, 2015); https://
www.govinfo.gov/content/pkg/FR-2015-04-29/pdf/
2015-09894.pdf, effective April 29, 2015; Subpart
I—Consumer Protection in Sales of Insurance, final
rule, 83 FR 13843 (April 2, 2018) https://
www.govinfo.gov/content/pkg/FR-2018-04-02/pdf/
2018-06163.pdf, effective May 2, 2018; Subpart J—
Fiduciary Powers of State Savings Associations,
final rule, 83 FR 60333 (Nov. 26, 2018) https://
www.govinfo.gov/content/pkg/FR-2018-11-26/pdf/
2018-25659.pdf, effective January 1, 2019; Subpart
K—Recordkeeping and Confirmation Requirements
for Securities Transactions, final rule, 78 FR 76721
(Dec. 19, 2013) https://www.govinfo.gov/content/
pkg/FR-2013-12-19/pdf/2013-29786.pdf, effective
January 24, 2014; Subpart L—Electronic Operations,
final rule, 80 FR 65612 (Oct. 27, 2015) https://
www.govinfo.gov/content/pkg/FR-2015-10-27/pdf/
2015-27292.pdf, effective November 27, 2015;
Subpart M—Deposits, final rule, 84 FR 65276 (Nov.
27, 2019) https://www.govinfo.gov/content/pkg/FR-
2019-11-27/pdf/2019-25697.pdf, effective December
27, 2019; Subpart N—Possession by Conservators or
Receivers of Federal and State Savings
Associations, final rule, 80 FR 5015 (Jan. 30, 2015)
https://www.govinfo.gov/content/pkg/FR-2015-01-
30/pdf/2015-01326.pdf, effective March 2, 2015;
Subpart O—Subordinate Organizations, final rule
approved by the FDIC Board on December 15, 2020,
https://www.fdic.gov/news/board/2020/2020-12-15-
notice-sum-g-fr.pdf; Subpart P—Lending and
Investment, final rule, 84 FR 31171 (July 1, 2019)
https://www.govinfo.gov/content/pkg/FR-2019-07-
01/pdf/2019-13449.pdf, effective July 31, 2019;
Subpart R—Regulatory Reporting Standards, final
rule, 85 FR 3247 (Jan. 21, 2020) https://
www.govinfo.gov/content/pkg/FR-2020-01-21/pdf/
2019-27577.pdf, effective February 20, 2020;
Subpart S—State Savings Associations—
Operations, final rule, 85 FR 3232 (Jan. 21, 2020)
https://www.govinfo.gov/content/pkg/FR-2020-01-
21/pdf/2019-27580.pdf, effective February 20, 2020;
Subpart T—Accounting Requirements, final rule, 85
FR 3250 (Jan. 21, 2020) https://www.govinfo.gov/
content/pkg/FR-2020-01-21/pdf/2019-27579.pdf,
effective February 20, 2020; Subpart U—Securities
of State Savings Associations, final rule, 79 FR
63498 (Oct. 24, 2014) https://www.govinfo.gov/
content/pkg/FR-2014-10-24/pdf/2014-25336.pdf,
effective November 24, 2014; Subpart V—
Management Officials Interlock, final rule, 80 FR
79250 (Dec. 21. 2015) https://www.govinfo.gov/
content/pkg/FR-2015-12-21/pdf/2015-31940.pdf,
effective January 20, 2016; Subpart W—Securities
Offerings, Subpart W is expected to be considered
at the January 19, 2021, Board meeting.; Subpart
X—Appraisals, final rule, 80 FR 33658 (June 9,
2015) https://www.govinfo.gov/content/pkg/FR-
2015-06-09/pdf/2015-12719.pdf, effective August
10, 2015; Subpart Y—Prompt Corrective Action,
final rule, §§ 390.450 through 390.455 rescinded
and removed, 83 FR 17737 (April 24, 2018) https://
www.govinfo.gov/content/pkg/FR-2018-04-24/pdf/
2018-06881.pdf, effective April 24, 2018; for
rescinding and removing the remaining sections of
subpart Y, §§ 390.456 through 390.459, a final rule
was approved by the FDIC Board on December 15,
2020, https://www.fdic.gov/news/board/2020/2020-
12-15-notice-sum-h-fr.pdf. https://www.fdic.gov/
news/board/2020/2020-12-15-notice-sum-h-fr-.pdf;
Subpart Z—Capital, final rule, 83 FR 17737 (Apr.
24, 2018) https://www.govinfo.gov/content/pkg/FR-
2018-04-24/pdf/2018-06881.pdf, (effective April 24,
2018).
6 Subpart Q is derived from part 561 of the OTS
regulations. 7 CALL Report data, June 2020.
FDIC has since rescinded and removed
all subparts of part 391.4 At present, the
FDIC has rescinded and removed 24 of
the 26 subparts of part 390 and a notice
of proposed rulemaking with respect to
subpart W (Securities Offerings), is
expected to be considered at the same
Board meeting.5 Subpart Q, the subject
of this Notice, is the final of the 26
subparts to be considered by the Board
for rescission.
III. Proposed Regulation Changes
Part 390, subpart Q, contains
definitions of terms used in subparts
390 and 391,6 and is derived from
definitions contained in 12 CFR part
561 of the OTS regulations. As noted
above, all of part 391 has been rescinded
and removed from the FDIC’s
regulations. For part 390, 24 of the 26
subparts have been rescinded and
removed and the other remaining
subpart, subpart W, is expected to be
considered at the January 2021 Board
meeting. Once this other remaining
subpart of part 390 is rescinded and
removed, no regulations will remain to
which the definitions in subpart Q will
apply. For this reason, the FDIC is
proposing to rescind and remove
subpart Q, the last of the 26 subparts,
and will coordinate the final rule’s
effective date with effective dates for the
rescission and removal of the remaining
other subparts of part 390.
IV. Expected Effects
As of the quarter ending June 30,
2020, the FDIC supervised 3,270
depository institutions, of which 35 (1.1
percent) are State savings associations.7
The proposed rule primarily would
affect regulations that govern State
savings associations. Therefore, the
FDIC estimates that the proposed rule
will affect 35 FDIC-supervised State
savings associations. As previously
discussed, the proposed rule, if adopted,
would rescind and remove part 390,
subpart Q. Since the proposed
rescission and removal of subpart Q is
being coordinated with the rescission
and removal of the five remaining
subparts of part 390, it will no longer
apply to any regulation and will,
therefore, be unnecessary. Based on the
forgoing, the proposed rule is not
expected to have any substantive effects
on FDIC-supervised State savings
associations.
The proposed rule could have a broad
effect on the public by simplifying the
Code of Federal Regulations, and
thereby, benefit the public by promoting
ease of understanding and reference.
Assessing the magnitude of this
potential effect appears infeasible given
the absence of direct studies
demonstrating the potential connection
between outdated federal regulations
and compliance outcomes.
The FDIC does not believe that the
proposed rule will have direct
substantive effects on financial market
activity or the U.S. economy.
The FDIC invites comments on all
aspects of this analysis. In particular,
would the proposed rule have any costs
or benefits to covered entities that the
FDIC has not identified?
V. Alternatives Considered
The FDIC has considered alternatives
to the proposed rule, but believes the
proposed rule represents the most
appropriate option for covered
institutions. As discussed previously,
the Dodd-Frank Act transferred to the
FDIC certain powers, duties, and
functions formerly performed by the
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khammond on DSKJM1Z7X2PROD with PROPOSALS
4 The list below reflects the relevant Federal
Register citations and effective dates for the
rescission and removal of the subparts of part 391.
Subpart A—Security Procedures, final rule, 83 FR
13839 (Apr. 2, 2018) https://www.govinfo.gov/
content/pkg/FR-2018-04-02/pdf/2018-06161.pdf,
effective May 2, 2018; Subpart B—Safety and
Soundness Guidelines and Compliance Procedures,
final rule, 80 FR 65904 (Oct. 28, 2015) https://
www.govinfo.gov/content/pkg/FR-2015-10-28/pdf/
2015-27293.pdf, effective November 27, 2015;
Subpart C—Fair Credit Reporting, final rule, 80 FR
65913 (Oct. 28, 2015) https://www.govinfo.gov/
content/pkg/FR-2015-10-28/pdf/2015-27291.pdf,
effective November 27, 2015; Subpart D—Loans in
Areas Having Special Flood Hazards, final rule, 79
FR 75742 (Dec. 19, 2014) https://www.govinfo.gov/
content/pkg/FR-2014-12-19/pdf/2014-29761.pdf,
effective January 20, 2015; and Subpart E—
Acquisitions of Control of State Savings
Associations, final rule, 80 FR 65889 (Oct. 28, 2015)
https://www.govinfo.gov/content/pkg/FR-2015-10-
28/pdf/2015-27289.pdf, effective January 1, 2016.
5 The list below reflects the relevant Federal
Register citations and effective dates for the 24
subparts of part 390 that have been rescinded and
removed. The FDIC is also expected to propose
rescinding and removing Subpart W at the same
Board meeting on January 19, 2021.
Subpart A—Restrictions on Post-Employment
Activities of Senior Examiners, final rule, 79 FR
42181 (July 21, 2014) https://www.govinfo.gov/
content/pkg/FR-2014-07-21/pdf/2014-16974.pdf,
effective August 20, 2014; Subpart B—Removals,
Suspensions, and Prohibitions Where a Crime is
Charged or Proven, final rule, 80 FR 5009 (Jan. 30
2015) https://www.govinfo.gov/content/pkg/FR-
2015-01-30/pdf/2015-01327.pdf, effective March 2,
2015; Subpart C—Rules of Practice and Procedure
in Adjudicatory Proceedings, final rule, 80 FR 5009
(Jan. 30 2015) https://www.govinfo.gov/content/pkg/
FR-2015-01-30/pdf/2015-01327.pdf, effective
March, 2, 2015; Subpart D—Rules for Investigations
and Formal Examination Proceedings, final rule, 80
FR 5009 (Jan. 30 2015) https://www.govinfo.gov/
content/pkg/FR-2015-01-30/pdf/2015-01327.pdf,
effective March 2, 2015; Subpart E—Rules of
Practice Before the FDIC, final rule, 80 FR 5009
(Jan. 30 2015) https://www.govinfo.gov/content/pkg/
FR-2015-01-30/pdf/2015-01327.pdf, effective March
2, 2015; Subpart F—Application Process
Procedures, final rule approved by the FDIC Board
on December 15, 2020, https://www.govinfo.gov/
content/pkg/FR-2020-10-15/pdf/2020-21000.pdf;
Subpart G—Nondiscrimination Requirements, final
rule approved by the FDIC Board on December 15,
2020, https://www.fdic.gov/news/board/2020/2020-
12-15-notice-sum-f-mem.pdf; Subpart H—
Disclosure and Reporting of CRA-Related
Agreements, final rule, 79 FR 42183 (July 21, 2014)
https://www.govinfo.gov/content/pkg/FR-2014-07-
21/pdf/2014-16973.pdf, effective August 20, 2014;
Correction 80 FR 23692 (Apr. 29, 2015); https://
www.govinfo.gov/content/pkg/FR-2015-04-29/pdf/
2015-09894.pdf, effective April 29, 2015; Subpart
I—Consumer Protection in Sales of Insurance, final
rule, 83 FR 13843 (April 2, 2018) https://
www.govinfo.gov/content/pkg/FR-2018-04-02/pdf/
2018-06163.pdf, effective May 2, 2018; Subpart J—
Fiduciary Powers of State Savings Associations,
final rule, 83 FR 60333 (Nov. 26, 2018) https://
www.govinfo.gov/content/pkg/FR-2018-11-26/pdf/
2018-25659.pdf, effective January 1, 2019; Subpart
K—Recordkeeping and Confirmation Requirements
for Securities Transactions, final rule, 78 FR 76721
(Dec. 19, 2013) https://www.govinfo.gov/content/
pkg/FR-2013-12-19/pdf/2013-29786.pdf, effective
January 24, 2014; Subpart L—Electronic Operations,
final rule, 80 FR 65612 (Oct. 27, 2015) https://
www.govinfo.gov/content/pkg/FR-2015-10-27/pdf/
2015-27292.pdf, effective November 27, 2015;
Subpart M—Deposits, final rule, 84 FR 65276 (Nov.
27, 2019) https://www.govinfo.gov/content/pkg/FR-
2019-11-27/pdf/2019-25697.pdf, effective December
27, 2019; Subpart N—Possession by Conservators or
Receivers of Federal and State Savings
Associations, final rule, 80 FR 5015 (Jan. 30, 2015)
https://www.govinfo.gov/content/pkg/FR-2015-01-
30/pdf/2015-01326.pdf, effective March 2, 2015;
Subpart O—Subordinate Organizations, final rule
approved by the FDIC Board on December 15, 2020,
https://www.fdic.gov/news/board/2020/2020-12-15-
notice-sum-g-fr.pdf; Subpart P—Lending and
Investment, final rule, 84 FR 31171 (July 1, 2019)
https://www.govinfo.gov/content/pkg/FR-2019-07-
01/pdf/2019-13449.pdf, effective July 31, 2019;
Subpart R—Regulatory Reporting Standards, final
rule, 85 FR 3247 (Jan. 21, 2020) https://
www.govinfo.gov/content/pkg/FR-2020-01-21/pdf/
2019-27577.pdf, effective February 20, 2020;
Subpart S—State Savings Associations—
Operations, final rule, 85 FR 3232 (Jan. 21, 2020)
https://www.govinfo.gov/content/pkg/FR-2020-01-
21/pdf/2019-27580.pdf, effective February 20, 2020;
Subpart T—Accounting Requirements, final rule, 85
FR 3250 (Jan. 21, 2020) https://www.govinfo.gov/
content/pkg/FR-2020-01-21/pdf/2019-27579.pdf,
effective February 20, 2020; Subpart U—Securities
of State Savings Associations, final rule, 79 FR
63498 (Oct. 24, 2014) https://www.govinfo.gov/
content/pkg/FR-2014-10-24/pdf/2014-25336.pdf,
effective November 24, 2014; Subpart V—
Management Officials Interlock, final rule, 80 FR
79250 (Dec. 21. 2015) https://www.govinfo.gov/
content/pkg/FR-2015-12-21/pdf/2015-31940.pdf,
effective January 20, 2016; Subpart W—Securities
Offerings, Subpart W is expected to be considered
at the January 19, 2021, Board meeting.; Subpart
X—Appraisals, final rule, 80 FR 33658 (June 9,
2015) https://www.govinfo.gov/content/pkg/FR-
2015-06-09/pdf/2015-12719.pdf, effective August
10, 2015; Subpart Y—Prompt Corrective Action,
final rule, §§ 390.450 through 390.455 rescinded
and removed, 83 FR 17737 (April 24, 2018) https://
www.govinfo.gov/content/pkg/FR-2018-04-24/pdf/
2018-06881.pdf, effective April 24, 2018; for
rescinding and removing the remaining sections of
subpart Y, §§ 390.456 through 390.459, a final rule
was approved by the FDIC Board on December 15,
2020, https://www.fdic.gov/news/board/2020/2020-
12-15-notice-sum-h-fr.pdf. https://www.fdic.gov/
news/board/2020/2020-12-15-notice-sum-h-fr-.pdf;
Subpart Z—Capital, final rule, 83 FR 17737 (Apr.
24, 2018) https://www.govinfo.gov/content/pkg/FR-
2018-04-24/pdf/2018-06881.pdf, (effective April 24,
2018).
6 Subpart Q is derived from part 561 of the OTS
regulations. 7 CALL Report data, June 2020.
FDIC has since rescinded and removed
all subparts of part 391.4 At present, the
FDIC has rescinded and removed 24 of
the 26 subparts of part 390 and a notice
of proposed rulemaking with respect to
subpart W (Securities Offerings), is
expected to be considered at the same
Board meeting.5 Subpart Q, the subject
of this Notice, is the final of the 26
subparts to be considered by the Board
for rescission.
III. Proposed Regulation Changes
Part 390, subpart Q, contains
definitions of terms used in subparts
390 and 391,6 and is derived from
definitions contained in 12 CFR part
561 of the OTS regulations. As noted
above, all of part 391 has been rescinded
and removed from the FDIC’s
regulations. For part 390, 24 of the 26
subparts have been rescinded and
removed and the other remaining
subpart, subpart W, is expected to be
considered at the January 2021 Board
meeting. Once this other remaining
subpart of part 390 is rescinded and
removed, no regulations will remain to
which the definitions in subpart Q will
apply. For this reason, the FDIC is
proposing to rescind and remove
subpart Q, the last of the 26 subparts,
and will coordinate the final rule’s
effective date with effective dates for the
rescission and removal of the remaining
other subparts of part 390.
IV. Expected Effects
As of the quarter ending June 30,
2020, the FDIC supervised 3,270
depository institutions, of which 35 (1.1
percent) are State savings associations.7
The proposed rule primarily would
affect regulations that govern State
savings associations. Therefore, the
FDIC estimates that the proposed rule
will affect 35 FDIC-supervised State
savings associations. As previously
discussed, the proposed rule, if adopted,
would rescind and remove part 390,
subpart Q. Since the proposed
rescission and removal of subpart Q is
being coordinated with the rescission
and removal of the five remaining
subparts of part 390, it will no longer
apply to any regulation and will,
therefore, be unnecessary. Based on the
forgoing, the proposed rule is not
expected to have any substantive effects
on FDIC-supervised State savings
associations.
The proposed rule could have a broad
effect on the public by simplifying the
Code of Federal Regulations, and
thereby, benefit the public by promoting
ease of understanding and reference.
Assessing the magnitude of this
potential effect appears infeasible given
the absence of direct studies
demonstrating the potential connection
between outdated federal regulations
and compliance outcomes.
The FDIC does not believe that the
proposed rule will have direct
substantive effects on financial market
activity or the U.S. economy.
The FDIC invites comments on all
aspects of this analysis. In particular,
would the proposed rule have any costs
or benefits to covered entities that the
FDIC has not identified?
V. Alternatives Considered
The FDIC has considered alternatives
to the proposed rule, but believes the
proposed rule represents the most
appropriate option for covered
institutions. As discussed previously,
the Dodd-Frank Act transferred to the
FDIC certain powers, duties, and
functions formerly performed by the
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